Vishay Precision Group, Inc. (VPG) reported a decline in financial performance for the fiscal quarter and nine months ended September 28, 2024, compared to the same periods in the previous year. Net revenues for Q3 2024 were $75.7 million, down 11.8% from $85.9 million in Q3 2023. For the nine months, revenues decreased to $233.9 million from $265.5 million, marking an 11.9% decline. The decrease in revenue was attributed to a 12.0% drop in volume across all reporting segments, despite a slight increase in average selling prices.

Gross profit for Q3 2024 was $30.3 million, down from $35.9 million in Q3 2023, resulting in a gross profit margin of 40.0%. Operating income also fell to $3.8 million from $8.2 million year-over-year. The company reported a net loss of $1.3 million for Q3 2024, compared to a net income of $6.4 million in Q3 2023. For the nine-month period, net earnings attributable to VPG stockholders were $9.1 million, down from $21.5 million, with basic earnings per share decreasing from $1.58 to $0.68.

The Sensors segment experienced a significant revenue decline, with Q3 2024 revenues at $28.2 million, down 13.3% from the previous year. The Weighing Solutions segment also saw a 13.1% decrease in revenue, while the Measurement Systems segment reported an 8.2% decline. The overall gross profit margin decreased across segments, primarily due to lower sales volumes and unfavorable product mixes.

VPG's total assets as of September 28, 2024, were $462.5 million, a decrease from $471.6 million at the end of 2023. Total liabilities also decreased to $131.9 million from $141.6 million, while stockholders' equity increased slightly to $330.6 million. The company maintained a strong current ratio of 4.4 to 1.0, up from 3.9 to 1.0 at the end of 2023.

Strategically, VPG has focused on optimizing operations and controlling costs through automation and relocating manufacturing to more cost-effective locations. The company also made a significant acquisition on September 30, 2024, purchasing Nokra Optische Prueftechnik und Automation GmbH for €3.95 million, enhancing its capabilities in precision measurement systems. Restructuring costs for the quarter were significantly lower at $0.1 million compared to $1.2 million in Q3 2023, reflecting ongoing efforts to streamline operations.

The effective tax rate for Q3 2024 was notably high at 343.2%, compared to 27.6% in the prior year, primarily due to changes in the mix of worldwide income and an increase in the valuation allowance on deferred tax assets.

About Vishay Precision Group, Inc.

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